Employee lending fintech launches investment platform

By Ryan Weeks on 5th September 2018

Fintech

Neyber has partnered with a robo-advisor to launch the new tool.

Employee lending fintech launches investment platform

Neyber, the Goldman Sachs-backed lending platform, has announced a partnership with online investment platform Smarterly.

Using Smarterly’s technology, the firms will offer an investment ISA to employees, allowing them to invest directly from their salary at no cost to their employer.

In time, the pair hope to plug what they call the nation’s ‘savings gap’ with such products as Adult ISAs, Junior ISAs and a general investment account, followed by a Lifetime ISA and Cash ISA.

Neyber is a lending platform which works with companies to offer loans as an employee benefit, with repayments deducted directly from salaries. This mechanism, it claims, allows it to reduce the cost of credit for borrowers.

Neyber has long talked of launching an investment product and had previously suggested it might launch a peer-to-peer platform to fund its loans. But that idea was likely shelved when the firm – which was founded by a trio former Goldman Sachs bankers – nabbed £100m in debt and equity capital from Goldman in September of last year.

Its partner, Smarterly, is a robo-advisor with a focus on combining ‘best practice e-ecommerce techniques with artificial intelligence’.

The new investment product takes the form of a portal, which employees can access quickly and easily. Those that use the product will benefit from ‘SmarterCare’ – an automated monitoring service which alerts customers to any notable changes to their investments.

For those wondering what exactly Neyber is bringing to the table, given that the tech belongs to Smarterly, the answer is simple: the network. Neyber will roll out the new product to more than 200 existing clients. Over 1.5m employees will be eligible to use the investment solutions.

Existing ISAs may be transferred into the portal. Smarterly charges a platform fee of 0.5 per cent, versus what it says is an industry average of 0.9 per cent.

“The expansion of our product range to include savings and investments is a huge milestone for Neyber as we continue to offer employees more options to take control of their money like never before. We are building a digital experience for employees fit for the 21st century, where the best financial products sit alongside personalised content and tools,” said Martin Ijaha (pictured, right), co-founder and chief executive officer of Neyber, in a statement.

Employers often match the contributions that employees make to their pensions. With the launch of its new investment portal, Neyber has suggested that some firms might consider an ISA-matching scheme, rendering them more attractive to top talent.

 

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